Pepco Group reveals ambition to become Europe’s largest discount variety retailer.
• €475m Group refinancing complete
• Strengthened management team in place
Pepkor Europe, the fast-growing multi-format pan-European discount variety retailer, today announced it has renamed to Pepco Group, directly linking the business to its market leading Central Europe operations.
This change to Pepco Group marks the culmination of a year of significant development and growth. The group has successfully completed a long-term €475m refinancing package, strengthened the management team through a number of senior appointments and continued to perform strongly with EBITDA growth for the year ending 30th September 2019 anticipated to be c. 18%.
The new name works well for all stakeholders; directly linking the group to its largest operation and leading Central European consumer brand, PEPCO, a rapidly expanding non-food discount retailer while distinguishing it from other global retailers.
Pepco Group houses three strong, independent discount variety retail brands: PEPCO, Dealz and Poundland.
Working with its global sourcing arm, PGS, these brands – operating across some of Europe’s largest economies – are committed to offering their 47m shoppers a month everything they need to replenish their home across key general merchandise, apparel and FMCG categories.
Pepco Group now has 2,698 stores in 14 countries, employing over 33,000 colleagues and today it confirmed its ambition to be Europe’s largest discount variety business, targeting more than 4,000 stores.
Its store opening programme will continue.
The group expects to establish up to 300 stores each year, primarily within PEPCO, where there remains significant opportunity in the 11 countries it already trades in to build on its leading market position. The group will also accelerate the roll-out of Dealz, the Poundland-inspired discount retailer for FMCG, general merchandise and apparel, initially in Spain and Poland
Pepco Group’s refreshed leadership team has significant retail experience and expertise. Chief Executive Andy Bond, former CEO of Asda and MD of George Clothing, joined the business in 2015. Chief Financial Officer Nick Wharton, appointed by Pepco Group in 2018, was CEO at Dunelm, and CFO at both Superdry and Halfords. Sean Cardinaal, Chief Operating Officer, has been at Pepkor for 15 years, including five years as CEO of its Ackermans operating company.
Andy Bond, CEO of Pepco Group, commented:
“The renaming of our business to Pepco Group follows another successful year for all our trading brands. At the Group level we anticipate EBITDA will increase by 18% year on year, giving a total growth over the past three years of 140%.
“Our new name is more distinctive and clearly links the group to its largest operating company and source of future growth. Following a successful refinancing and with a clear, focused strategy in place, we remain well positioned to continue our growth and deliver our ambition to become Europe’s pre-eminent discount variety retail business.”